As the first year of privatising the Indian insurance industry draws near, the Insurance Regulatory and Development Authority (Irda) is busy reviewing the progress made so far by the sector.
N Rangachary, chairman of Irda, was in the city on Tuesday, visiting Reliance General Insurance Company, which was the first private player to get the general insurer licence on October 23.
"We just visited Reliance to get an idea of their plans. We understand that they are waiting for the infoech infrastructure to take off," said Rangachary.
Rangachary, on his previous visits to the country's financial capital, made a trip to Tata AIG and Birla Sun Life. The visits were to understand what problems the players face and how they are progressing.
"This is a nice way to do things as the regulator comes down to tell us what he wants and listens to what we want to emphasize. It is not necessary to have everything formal in writing," said Vijay Singh, director, Birla Sun Life.
Such informal meetings play a crucial role as the Irda is not just a regulator but also plays a role in the development of the industry. Prior to being awarded licences, the new players had presented their plans.
Reliance made a presentation to the insurance chief on Tuesday and informed him that once the infotech backbone gets underway, "hopefully by December", Reliance General Insurance proposes to tap the masses.
The insurer intends to focus on personal lines and healthcare. At present, its sales have been largely restricted to corporates as the company has yet to develop its distribution arm.
